5 Crucial Questions to Ask Before Upsizing Your Home

5 Crucial Questions to Ask Before Upsizing Your Home
Wednesday, November 15, 2017 Kate Culverwell

Whether you are upsizing to accommodate a growing family, a new marriage, to start a home business or just because you feel you need the extra space, there are factors which should not be overlooked.

Here are 5 crucial questions to ask yourself before upsizing:

1. What are your main objectives

Before upsizing consider your longer term goals. Are you making the change for lifestyle reasons or with the mind to make profit from the investment down the line? By answering this question you will better select a property which will meet both your current and future needs and goals.

2. How much can you afford to borrow

Take a hard and honest look at factors which will affect the amount of money you can afford to borrow. These factors will include the current income level of your household, monthly expenses, number of dependants and the preferred loan term. Reviewing your finances and goals with your finance provider is a must in order to get clear on your status.

3. What other costs may you incur when upsizing

Upsizing and moving often comes with extra costs you may have not bargained for. Limit the chances of unwanted surprises by considering these costs beforehand and factoring them into your budget.

Moving services, increased property taxes, garden maintenance, insurance, the cost of any new furnishings or fittings, are just some of the items to consider.

4. Do you plan to make any renovations

Are you planning to make any small or larger renovations to your new home for it to be ideally how you want it?

Some people prefer to renovate or extend onto their current home as opposed to upsizing to a brand new property. Look into the pro’s and con's of this if you see it as an option. Always bear in mind the importance of not spending more on renovations and improvements than the potential profit you would make from these, when selling down the line.

5. Could you afford a ‘lag’ time between buying & selling

Ideally you would want a buyer for your old house before buying and moving into a new one. This is not always a reality however so it would be a good idea to discuss such matters with your finance provider to insure you and your family are not put out of pocket for any period of time.